The truth is that it’s very difficult to gauge bottom from price action alone. You only have to look at the bottoming process from past bear markets to show how difficult it is to call it over. And why investors are so frequently pulled into “sucker’s rallies” before true bottom is found.
This brings us back around to an exploration of the future outlook for the economy and what that means for share price valuations.
Because falling economy > falling earnings > falling PE levels > MUCH LOWR stock prices.
The post Stock Market Bottom? Think Again… originally appeared at StockNews.com.